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SCOTLAND’S richest MSP is under pressure to return a £185,000 property development grant after bungling officials failed to claim it back on time.
Taxpayer cash was awarded to a firm owned by the Conservative MSP for Aberdeenshire West, Alexander Burnett, in 2000 to help kick-start the construction of Banchory Business Park.
READ MORE: Scotland’s richest MSP's company pockets £185k in grant ‘shambles’
Below is a timeline of events.
December 4, 1997
Alexander Burnett of Leys appointed director of North Banchory Company.
May 2, 2000
Grampian Enterprise approves grant of £185,000 to North Banchory Company for business park development, total value estimated at £2.3 million.
February 20, 2001
Lawyers for North Banchory Company accept offer including clawback conditions, which limit maximum repayment to £185,000. Grant repayments would have been triggered if the business building was sold for more than £2.03m or if the serviced sites were sold for value greater than £75,000 per acre, or if both the sites were together valued at more than £2.3m five years after construction has completed.
August 31, 2007
Development complete and largely let to tenants, according to emails. Five years after the agreed development completion date. As the development had not been sold by this date, the developer argues that the market value of the site at this date should be basis of any grant repayment claim, as set out in the terms and conditions of the grant.
Late 2012 - October 2013
Correspondence between North Banchory Company and Scottish Enterprise regarding the final grant repayments ends with Scottish Enterprise official promising to get back to North Banchory Company representatives by November 2013. North Banchory Company emails suggest that they subsequently never made claim for repayment.
March 31, 2015
Banchory Business Centre and Deeside Dance Studio were together valued by Strutt and Parker as worth £2.6m according to North Banchory Company accounts.
April 2016
Alexander Burnett notifies Companies House as “person of significant control” of North Banchory Company. Controls 75% of equity in company and has right to appoint other directors.
May 2016
Alexander Burnett elected to Holyrood.
August 2017
10 years after the completion date – the last date which Scottish Enterprise could have made claim for repayment.
February 2018
“Discussions and dialogue” resume, instigated by North Banchory Company, as they consider selling part of site. North Banchory Company argues that the Scottish Enterprise cannot legally enforce any repayment.
March 2018
Whilst Alexander Burnett has been an MSP he received occasional pension payments, medical insurance and an annual salary of £6273 per annum for between one and zero days work per month from North Banchory Company. After March 2018, he ceased to receive salary payments.
January 2019
Scottish Enterprise officials confirm that they will not pursue any repayment of the grant.
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